good thursday morning. i'm sara eisen with dom chu. emg capital founder eric jackson on tech earnings ahead of apple. why he's bullish on names like shopify. >> a deep dive into results come up as well. an earnings exclusive with kristen peck as pet ownership and sales surge in the u.s. let's take a look at the markets as falling interest rates give a boost to those equities. the dow is up by 407 points. north of 1.25% gains. the s&p 500 up 1.5%. 4303 the last trade there. the nasdaq up, 13,250.

>> falling on back of the treasury yields. starbucks is at the top of the s&p and up 10.5%. >> macro and micro, working together, positively. >> right. >> hasn't happened in a long time. >> it's been a while. >> on the back of yesterday's fed announcement, our next guest says we're done with rate hikes but doesn't think the central bank has room for cuts, saying now is the time to hunt for value in small caps with little to no debt. joining us at post 9 is bespoke co-founder, paul hecky. do you think this rally is for real? >> we were oversold. the market is breathing a sigh of relief. on the anticipation of no more rate hikes. the geopolitical temperature is starting to lessen here. you had this have big -- the impact of what happened in israel and the middle east shouldn't be underestimated on the market in september.

we're starting to breathe a sigh of relief here. the fed is basically done when you have powell saying the dots can get stale. >> decay the word. >> constellation rang the bell. i think he's planning to sit on the beach in the corona commercial for -- >> but if the whole rally is predicated on the fa account that the fed is done, are we sure the fed is done? there's a 20% chance in the markets that they hike in december. powell left the door open to keep tightening if inflation doesn't continue to come down and the data is running a little hot. >> right. i don't think necessarily this -- the market is rallying strictly on the fed. today -- but this is a four-day rally we're looking at. we were up monday and tuesday coming into this. and i think we were at oversold levels. i think you're starting to see the earnings picture improve as far as the results are going to expectations. guidance hasn't been -- it's been weaker than prior quarters

but it hasn't been, you know -- it's in line with historical average. we're seeing more companies with lower guidance and raise guidance but how can you blame them? when we were leading to the buildup of war in ukraine, we had two negative quarters of gdp sandwiched between that invasion. i think it would be behoove someone to be very bullish on their outlook when reporting. >> paul, you and your firm bespoke have become synonymous with this idea of looking at market history, the patterns that emerged. i wonder if you take a look at what's happening right now. we take a look at intraseason pricedowns prevalent on a normal year. we got a decent amount this year. do you feel as though we're done now at this point? can we be more optimistic there's no more pronounced downside in a seasonably strong side for the market? >> we are in a seasonably strong -- going back to historical trend. if you overlay this year's pattern over to the typical

seasonal pattern, it was like step for step. the ups and downs. it was until hamas attacked israel that we started to see the divergence. i think if you can see it tone down in that temperature, that's going to help the market going forward in what is a seasonably strong time of the year. think about this. the fed hasn't done anything in the last two meetings. financial conditions have tightened by just as much in the last three months as they did last november when they had hiked four times in a row 75 basis points. so, we've seen a big tightening of financial conditions over the last three months. when you tend to see that, the rubber band or, you know, the baby can only scream so long. eventually they calm down and we get back to a more stable situation. >> so, let's talk about small cap stocks with little to no debt. that's the call, right? >> right. so, you look at small caps. they're down a third from their highs. they are -- they're in the third

longest losing streak without hitting the 52-week high in russell history. the total return over the last five years of the russell 2000 is 10%. not annualized 10% gross return. when you look back at those periods in the past, small caps tend to outperform going forward, then you always want to ask, is there something different right now? so, what's different now is there's a lot of companies in the russell 2000 that were zombie companies funded on zero interest rates. they may not be able to refinance. if you look within the russell 2000 of companies that have the least amount of debt, they're down about 15% over the last three months. the companies with the most debt are down 30%. so, i think if you -- you can pick and choose these smaller companies that aren't necessarily going to have to rely on the credit markets to keep themselves in existence going forward. >> isn't it strange to ball small caps, usually tied to the u.s. economy at a time we see weakness in the economy and hear

that from companies. >> this is a cycle unlike any other cycle. we've talked in the past, you can look at certain indicator and show the economy is falling off a cliff. like leading indicators and yield curve. you can look at other indicators like jobless claims that remain at historically low levels even though continuing claims remain to tick up. you have impulse with the monetary pushing against the economy and you have the fiscal pushing for the economy. all that fiscal money is going to be spent in the united states. that's going to help smaller companies. >> so, the small cap thesis with little to no debt, that's one part your advocating for. i wonder if you can translate that same story to any degree to large cap stocks with little to no debt. if so, what are those companies? >> yeah, well, i mean, in the mega cap space, you have some companies that are very overvalued on -- high richly valued, be more diplomatic. you look at alphabet last week. it fell on a small earnings miss

in the cloud -- revenue miss in the cloud. that 9% decline was overdone. and it's a reasonable valuation for a company where their search business and advertising business remain very strong. another company, celsius, they make the energy drink, pepsi owns 8.5% of the company. so, a company like -- they've increased their sales since that partnership with pepsi by over 100% in the last year. they're very popular among college. and the pepsi partnership gives them entrance into more than 60% of college campuses across the country. that's a reservoir for further growth going forward. it's one of these feel-good or healthy energy drinks. they're not loaded with sugar or caffeine. and pepsi, it's very expensive to fund an expansion. when you have a backer partner like pepsi, that will make that expansion much easier. >> okay.

i wasn't expecting that -- a stock pick like that from you. on the other hand, you like google, alphabet, right? >> yeah, alphabet is a name. the selloff last week on that earnings report, we feel like it was overdone. >> okay, paul. thank you. >> thanks for having me. >> paul hickey from bespoke. that's what we got right now. we got the government over here -- okay. we actually do have some moving news right now. after the break, we'll get to it because nat gas company williams is yielding more than 5% in terms of its payout. they handle one-third of the natural gas used every day in the united states. williams ceo joins us coming up next. solar edge getting hit hard. is the sector still investable with many in the space down 70%? we'll discuss that next.

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street. closing arguments in the ftx sam bankman-fried trial wrapping up yesterday. the government getting a shot at rebuttal and the case could head to a jury later on today. our kate rooney is outside the courthouse in manhattan with what comes next. what will it be, kate? >> reporter: the government just got the last word in sam bankma bankman-fried's criminal trial. next up the judge will give jury instructions. the judge is going to keep them late tonight until after 8:00 p.m. in that rebuttal the prosecution argued sam bankman-fried's assets and taking the money and spending it on himself and the business is not reasonable, is not a reasonable business decision, saying it's fraud. saying sbf, as he's known, had the arrogance to think he could get away with a fraud. the government attorney said that that is not a defense but a strategy.

they say if you are embezzling money, of course you don't have a chief risk officer. addressing some of the points that the defense made. the attorney ended by telling the jurors that bankman-fried thought he could fool customers, reporters, and now them. she said, don't fall for it, find for him guilty. they called his supposed ignorance of alleged crimes of the crypto company into question saying to believe his story you would have to ignore the evidence. you would have to believe the defendant who graduated from m m.i.t. and built two multibillion dollar companies was clueless. his attorneys say he was acting in good faith. it's not a crime to have bad risk management. they told the jury the collapse is much more nuanced than the prosecution described. the defense attorneys said, it's not a movie and he's not a villain. bankman-fried was holding back tears at one point in the courtroom. there is no court tomorrow but we could be on verdict watch as

soon as this afternoon. back to you. >> so, now that you've heard it all, kate, what were some of the biggest revelations or bombshells that came out of this trial? >> some of the biggest bombshells were what bankman-fried, including google metadata. he opened financial statements that showed multibillion dollar holes while he was saying certain things publicly. interviews with cnbc and others, and tweeting out certain statements that paint a different picture than what all of us thought was the story of ftx. behind the scenes, prosecution is saying he knew about the issues. that's been the most shocking thing to hear. there have been other salacious details. i think the testimony from caroline ellison will stick in the mind of jurors as they go to deliberation today. >> well, those deliberations

begin. keep us posted. thank you, kate rooney. outside the new york courtroom. shares of solar edge are tanking. let's get to pippa stevens with a market flash on that name and a look at the rest of the sector. just when you think it couldn't be worse. >> reporter: solar edge missed estimates against what was already a lowered bar after the company issued preliminary results less than two weeks ago. essentially warning wall street about a slowdown as demand in europe stalls. there is no sign of a turn-around. solar edge's q4 revenue guidance half of what wall street was looking for with margins forecast to take a big hit. cfofaier telling me the european market is a perfect storm they've never seen before in terms of just how violent and quick the slowdown has been. rising rates are the main factor here since it increases the payback period for sew lor system. the stock getting five downgrades today, including guggenheim which titled its note, quote, we give up.

other consumer-focused solar companies are also dealing with the effects of soaring interest rates and weak guidance, while installer sun power is in discussion with lenders while also facing lackluster demand. sun run announcing it's pivoting to a storage-focused company rather than chasing customer growth at all costs. that stock is slightly higher today, but still, dom, down more than 70% this year. back to you. >> thank you very much, pippa stevens with the latest on the solar trades. sticking with energy but on the traditional side it's been a brutal year for natural gas prices. down more than 20% on a year-to-date basis, but our next guest is bucking the trend. williams, one of the biggest players in nat gas, delivered a beat in third quarter and raising the low end of the company's earning guidance for full year 2023. joining us in a cnbc exclusive interview is williams' ceo alan armstrong. williams handles a third of all the nat gas traveling through the country all over america.

great to have you here. i wonder if you could set things up with the state of play with what is happening with natural gas and do you think those trends will start to trend upward given the colder weather that we're just starting to feel here in the northeast? >> great question. thank you for having me on today. main thing about williams, our business is providing infrastructure for natural gas. in the long term, low natural gas prices are actually good for our business because it drives incremental demand for transportation, both on our gathering systems and really importantly on our big transmission systems that serve really all of the eastern seaboard and the northwest as well. as natural gas prices have been low, we're seeing very strong increments of demand, power generation demand this year, year-to-date is up 7% from natural gas. and so even though total power

generation has been relatively flat, the increase on natural gas has been up 7%. that does drive a lot of the value in our business. and we tend to have upside as well when prices go high because we do have producers on our gathering systems that will respond to pricing and increased volumes as well. we're very well positioned. as long as natural gas demand continues to grow and right now all the signals are very strong that natural gas demand is continuing to grow. >> if natural gas demand in that profile, that footprint is continuing to grow, do you feel as though, alan, america is in a position right now both from an infrastructure perspective and political perspective to kind of leverage that natural gas resource that this country has, do you think there's a way for you to spend even more money to

build out pipeline capacity and transportation capacity throughout this country? >> yes. one of the things we have as an advantage at williams is the incumbent position where we have right away in densely populated areas where growth is occurring and the connection into the marcellus and utica region, which is the largest, by far, gas play we have in the u.s. and so we are connected to very fastest growing markets in terms of power generation load, converting from coal to clean or natural gas in the power generation market along the eastern seaboard, and then in the gulf coast where we're seeing more than a doubling of the lng export capacity here by 2030. so, those are big drivers for demand for us. we are extremely well positioned to capture the infrastructure for that. we can do it without the very difficult permitting efforts because we have this incumbent

position and we can develop along our pipeline system. >> i was going to say, as a pipeline company, would you ever build an export facility? >> you know, we're in the business today where we try to take advantage of our incumbent position. so, that really means taking advantage of what we're really good at. there's a lot of good developers of lng. we certainly want to be great suppliers and serve those customers. today, that's what we're focused on. >> what about m&a, we have seen a pretty active year so far for emp consolidation. do pipelines come next? >> we have continued, as williams we acquired mount west pipelines earlier in the year. we just announced an acquisition at this earnings call where we were buying another gathering system in the dj basin and expanding our footprint there.

we continue to do a lot on acquisitions and a lot of value ondoing that because as interest rates have come up, that puts pressure on private equity holders of infrastructure. we've seen a lot of opportunity in buying both on transactions where we can add a lot of synergy and take a tremendous amount of cost out of these smaller operators. that's really for us, anything else we look at is going to have to compete with that and it's going to be difficult to compete with that, i think. >> before we let you go, what's the biggest hurdle facing your company in its growth capacity, its plans for future expansion? what would need to happen in this country overall overall, politically, geographically, anything else that would make your business grow faster? another way of saying it, what is it going to take for you to expand even more? >> it really is a shame that we as a country have stopped

ourselves from expanding our natural gas infrastructure into the northeast, particularly into new england. where last winter we were having to burn fuel oil and coal, which is more than twice amount of emissions as burning natural gas. here we sit with one of the largest deposits of gas in pennsylvania in the marcellus, about 120 to 150 miles away from that market. as simple as it should be for us to build a pipeline into their area and cut people's energy costs in half in that area, as well as reduce their emissions in half, we don't have the courage or the consolidated perspective enough to take advantage of our natural gas here in the u.s. so, there's some huge opportunities like that. meanwhile, we had open season on the mid-atlantic and southeast states who definitely get it. we had almost three bcf a day, so that's about 3% of the

nation's consumption. we had a three bcf a day increment in that open season. people in the southeast and mid-atlantic are getting it. unfortunately, the northeast and new england markets are really starving themselves from an opportunity to reduce emissions and reduce their utility bills. >> alan armstrong, a lot to talk about here. we hope you'll come back and join us soon. thank you. >> thank you very much. appreciate it. >> williams, 2% off the 52-week high. straight ahead, much more coming up on the moves we've seen in tech. we're going to talk to palantir and shopify. a look ahead to apple reporting tonight and riding a four-day win streak. and then moderna shares sinking. the story behind the move is ahead. don't go away. keep it right here. we'll be back after this break. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud.

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check out what's happening with shares of moderna. they're falling by 8% on the session so far after posting a steep loss for the third quarter. after recording a large writedown due to unused doses of its covid vaccine. deutsche bank piling on, taking the stock to a sell rating, writing the company could weather more negative revenue revisions. but there's increasingly little room for error. the pandemic darling still up slightly over the last three years, but down more than 80% from its highs that we saw back in august of 2021.

it's been a very roller coaster ride, sara, for moderna. european markets going strong into the close this morning as investors cheer on the fed and the bank of england today. decision to hold rates steady. despite the hold, andrew bailey warning that invasion is still too high. tech stocks are leading the gains. up more than 3.5%. mining stocks are up 2% as well. individual earnings movers, too. lufthansa up 8% after beating third quarter expectations amid strong summer travel demand. no novo nordisk saying weguvy will remain restricted in the united states. they feel this is europe's most valuable company. on the u.s. market the cfo says, we'll be supplying significantly more in '24 than what we did in 2023 because now their biggest problem is supply.

>> it's not even just that. the story for eli lilly, $1.4 billion from monjaro. i know someone who's been on that product from eli lilly and that person -- >> for diabetes. >> yes. well, in this case here for weight loss. and it was significant. the man looks like a whole different person after going on some of these products. i can understand why some of these people are tackling weguvy, ozempic in a huge way. >> it's a huge market and having so far game-changing health effects. we'll shift two hours into trading. let's go post to post with bob pisani for a look at what is moving, besides big drug names. >> ten-year yield will get you 170 points. we're up 4.5% this week. what happened? the ten-year yield was almost 5% a few days ago. you're talking 4.65% right now.

that is an enormous move to the downside. that's what's moving stocks. now, when you combine this with some earnings reports, in some cases a little better than expected, you get a little rocket ship. here's clorox. you know what happened to clorox. look at this move up today here on earnings report a little better than expected for them. sales down 18%. that was a little less than expected overall. you get this rocket ship with lower yields and a little better earnings. what else have we got? ingersoll rand, we were talking about that yesterday. better than expected numbers. and following through again today here. so, it was $61 a couple days ago. now it's $66. you see the move up. a little better earnings combined with lower rates overall. same with parker hanifin, good numbers we had here.

404, so 369 yesterday. look at the move up here. that's an enormous move. these are low beta stocks. they don't normally move anything close to 8%, 9%. finally, what else can i show you? look what it's doing to the home builders. here's pulte. pulte was $72 on monday. these are low beta names. they don't normally move like this. here's greg. a couple days ago. now the chart on the upside here. these lower interest rates are revving the markets up, sara, and if you can get a little decent earnings reports, it kind of is a little rocket here. all of a sudden you get stuff that normally doesn't move more than 2% in a day moving 8%, 9%. that's what we're seeing right now. >> rate relief. bob, thank you. bob pisani. time for a news update.

>> good morning. the senate says it will work on its own emergency aid packet to israel and not take up the proposal. the house plan, which is expected to get a vote today, would provide $14.3 billion in aid to israel by cutting irs funding. the senate's plan would differ by providing aid to ukraine. the debate over aid comes as israel's military says its ground offensive is progressing in the north of gaza and hamas defense lines are collapsing. meanwhile, israel is facing some international criticism for strikes on a large refugee camp. unicef officials said the strikes cannot become the new normal but israeli military officials say they were targeting hamas commanders. today is the second day of testimony from donald trump's adult sons in the $250 million civil fraud trial against the former president's family and their company. donald trump jr. will be up first followed by his brother, eric trump on the stand.

next week, the former president and his daughter are expected to testify, sara. >> thank you. still to come, the bellwether pure play of animal health. that's how bank of america describes zoetis. we'll break it down with the ceo when she joins us for an exclusive later this hour. back in just two minutes with the market going strong here. up more than 370 points on the dow.

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along with the rest of the section. julia boorstin has more on the

names. >> huge movers. roku shares surging, up 30% after the company reported better than expected third quarter revenue and fourth quarter revenue guidance that came in way ahead of expectations. up 30.5%. this was due in part to an advertising rebound and it did prompt a number of bullish analyst reports. roku saying we had a solid rebound in q3. expected year-over-year of video similar in q4. paramount reporting earnings after the bell today. seeing its shares surge 9%. warner bros. discovery shares are up 9%. i have to point out here that all of the media giants are outperforming the market. disney shares are up 2%. comcast shares up 1% on the heels of those two companies taking the next step towards closing the hulu deal. >> dom? >> julia boorstin with the latest. despite the outperformance

of the magnificent 7 stocks versus the equal weighted s&p, some think others outside those winners have taking their medicine. we're talking shopify and palantir, which he thinks could double in the next 12 months. joining us now is emj capital founder and president eric jackson. eric, great to have you with us on set at the new york stock exchange. this tech trade is something else because it's been a roller coaster ride in certain parts of tech and not as much in others. so, take us through what exactly your investing thesis is for tech and media and telecom. >> i think the mag 7 rally masked the pain. this is 2023, coming off pretty miserable 2022. even 2021 was not good for smaller cap tech companies. i think yesterday's fed an

announcement is going to reverberate in a positive way for a lot of these stocks that have missed out on the mag 7 rally for the coming weeks and, perhaps, months. obviously the fed has basically -- you know, it sort of signaled for the first time since february 2021 they're stepping back. and feb '21 is when a lot of tech names went into the tank and yet to emerge. some names are down 70%, 80%, 90%. mag 7 is great, but there is significant pain out there. >> so, take us through what exactly the thought process is when you as a portfolio manager take a look at what you want to put on the shopping list. what factors stick out most to you right now? interest rate balance sheet driven or more performance income statement driven? what goes on the shopping list? >> the announcement from roku,

palantir, shopify, all those speak to there's a lot of health in a lot of these businesses. whether it's small to midcap companies investing in e-commerce. investments in a.i., which we saw in the palantir report. there's a lot of good news out there. making your shopping list, you want to look at how much have some of these names come off, what is their future ebitda path over the next year, and are the multiple -- most of these multiples like ev to ebitda are not even back to 2017 levels. they're back to 2013, 2014. that makes me excited. that makes me think the market is going to cast some of these names aside and it's worth looking at them again. >> do they have to be profitable? is it different? >> they don't have to be profitable, believe it or not. i think the most interesting ideas are the ones that are not profitable today but they could be profitable a year from now,

two years from now. >> like who? >> rivian is on the path to profitability, for example, and i know, it's typically when those names go from a carvana today is tossed aside. it's seen as still a losing company. a year from now, two years from now, could it be profitable? sometimes those are the best opportunities. if you look at amazon 20 years ago it is when people were most pessimistic about it but about to make the turn. >> do you see it as a bellwether reporting today? >> it's a bellwether for the whole market. there's no way an apple can basically fall out of bed with a bad earnings report and not have significant impact because it's so important. stan drukmiller's comments, if it takes down an apple, takes down some other mag 7 names,

that will have big ramifications. >> do you own apple? >> i do not. >> would you own it? >> i have owned it off and on this year. it's definitely had a pullback. it's come back now from 160s to 177 today. i'm optimistic. it could be a good report. a lot of people are saying, who wants to upgrade to the 15 in they say that every year. and yet record waiting lines this all that. i'll be watching. on a good report it's something i'll look to get back into it. >> eric jackson, thank you. just mentioned it, apple set to report after the bell. the stock is riding a four-day winning streak into that print after the bell today. the numbers could have a huge impact, as eric points out, on the overall market narrative with apple making up 7% of the s&p weighting. "squawk on the street" returns after this. you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plans available in your area, you may be

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shares of apple are higher

today ahead of the earnings report after the closing bell. investors are focused on outlook to for its all important holiday quarter amid-reports of muted holiday demand. that's the focus of today's "techcheck" as we saw a flash of deirdre bosa in the screen. >> it was a preview. i wasn't looking at the camera. good morning, dom. i'm here, indeed. it was almost a year ago that protests broke out at foxcom that called for apple to diversify its supply chain. diversification has been slow and maybe even gone the other way as apple leans into its relationship with another chinese company. a recent "wall street journal" report looked at apple's partnership and growing dependence on a chinese company with shares on the shenzhen exchange. they are the assembler of the mixed reality headset.

on tim cook's latest trip to china, he visited a lux share factory. this is the video he posted, thanking the company and praising the ceo. a relationship indication that breaking up with china is hard to do. even if china is trying to diversify away from foxcon, it may need to rely on another chinese company. there's also a key distinction here. foxconn is headquartered in taiwan. the grace wong, the ceo, holds a political post as a member of a chinese national advisory body. in contrast, foxconn's ceo has found himself in political hot water after making bold comments in defiance of beijing, claiming the communist government wouldn't dare touch foxconn because of its global customers. it's a development that could further hasten apple's move to

lux share. supply chain may take a backseat to chinese demand this quarter. it remains a potential threat for apple. this quarter investors will be focused on huawei and those smartphones that were s essentially left for dead but it's made with the 60 pro which has become a sellout success. we looked at all sides of apple's problems in our "techcheck" weekly. check it out at cnbc.com tcweekly. we felt we needed to do this because the challenges in china have been piling up particularly over the last year. >> deirdre, isn't that the reason why apple is focused so much right now on developing now business and initiatives with india? how long before india becomes a bigger part of that story? >> it's going to be slow. that is ramping up. i think the key point we were trying to make here in this segment is that apple talks a lot about increasing its

relationship with other markets like india and vietnam. you take a company like lux share. this isn't something apple talks a lot about here in the west. but that relationship is only growing. you know, lux share doesn't say in its annual report who its biggest customer is. we can guess it's apple and 70% of revenue from apple. the point being it's going to be really hard to do, a tough slog on the supply chain side. meanwhile, demand is showing some cracks as well. >> it's an interesting angle on the big headliner tonight. thank you, deirdre. deirdre bosa. ahead, an earnings exclusive with the ceo of zoetis. revenue a slight mist but telling us there are multiple areas of growth ahead. we'll talk about animal health with the stock up almost 5%.

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zoetis, the world's largest provider of medicine and vaccination for pets and livestock, out with earnings this morning coming in line with the street expectations although revenue came in soft and guidance updated to reflect foreign exchange rates. the stock getting a nice bump today. it had sold off into the report. joining us now on the quarter with her outlook is zoetis ceo kristin peck. welcome back. good to see you. >> thanks, sara. it's good to be back. >> there was a little bit of nervousness with what's going on with the consumer around these results. it looks like you managed to come in line. what are you seeing across livestock and pet care?

>> we delivered a really strong quarter with 8% operational revenue growth at the top line and 13% on adjusted net income and led by our diverse and durable portfolio which had five key growth catalysts. there was 11% in the quarter from our dermatology and our pain portfolio leading the way with over 90% growth with our monoclonal auto bodies for pain. >> how tied is it with the consumer and the macro environment? if there's more pressure on the economy, doesn't that mean we spend less? >> i think you have to focus on who is adopting the dogs and who owns most of the dogs, and that tends to be millennials and gen-z and high-income households. they see their dogs as important parts of their family. we talk about the humanization of pets often, and they have a

very high standard of care and what we've continued to see throughout many economic cycles is the resilience of not just the animal health sector but of zoetis given the significant innovation we bring to the market. >> kristin, it's dom. you mentioned -- i mean, i have two dogs. sara has had dogs. we love our pets. if you look at personal pet care versus what's happening with livestock, equine, where are you seeing that more pronounced growth and where are you investing more heavily, with dogs and cats or with horses or pigs, chickens and everything else down the line? >> the greatest growth area is companion animals, in particular dogs and cats. you saw 11% growth for zoetis, and we're leading that with innovation, bringing game-changing innovations. i have a dog, too -- actually,

two. my oldest dog is on a product, she's now jumping on the bed and playing with us outside. and that really changes what it is for a family. we really see the greatest growth driver in dogs and cats and really continue to be led by our pains, our dying diagnostics portfolio. >> the weaker spot in the portfolio, i know there's a big business in china as well. what can you tell us. >> livestock on the quarter grew about 3%. and generally the livestock market grows at 2% to 4%. we've been, as you mentioned, growing slower than that historically. year to date i think we're around 6%. and that has more to do with the loss of exclusivity on a product. the macro drivers of livestock remain, and really that has to do with the growing middle class and more people who need to eat protein, and we see those trends as incredibly durable and will

continue to grow. if you look at livestock, we think it will continue to grow in the low single digits for zoetis this year and going forward. >> kristin, you mentioned that kind of dropping exclusivity. how important is patent protection for a company like zoetis, and how significant is generic competition with regard to pet care and medicine? >> sure. animal health is quite different than human health, and i think that's important for investors to understand. we don't have the same pressures that you see in human health. for starters, we can develop products much faster, innovation is faster in animal health, and we don't have third party pairs who often will push consumers to buy lower priced products, but we also can do so much more on life cycle innovation. we were excited this quarter to launch, for example, a product for dermatology, a chewable, liver flavored. instead of having to figure out how you put a pill in some cheese to get your dog, you can give them almost a treat, a

liver flavored medicine. so it is quite different than human health and less susceptible to patent exclusivity in the companion animal space where we still see growth in products that are significantly past their patent life. >> where are the obesity drugs, kristin? my old dog had diabetes. i have to imagine -- >> my dog is on an anti-diabetic dog food. >> where are they, kristin? >> we had a product years ago, i think my dog hannah might have been one of the only pets on the product. so we have had a product that didn't really take off the way we expected. i'm thinking maybe we should bring it back. >> yeah, i mean, that's all the rage in health care. kristin peck, thank you very much for the update. >> thank you, dom and sara, good to see you. time for "the buzz." ferrari racing ahead reporting a 46% jump in profits for the third quarter raising its

full-year guidance. the ceo saying that personalization is driving customers toward higher end models and its order book is strong through 2025. ferrari has grown nearly 150% since the launch of netflix's formula one reality series "drive to survive" in 2019. speaking of that, formula one, i have a new documentary coming out very excited to share with you november 16th on cnbc at 8:00 p.m. eastern time. it looks at teams like ferrari and others, red bull and mercedes -- >> this must have been a fun assignment. >> it was fun and i learned a lot about just how much the business is taking off, of the teams, how profitable they've become, the valuations, and the entire sport and the league and how it's grown. >> not just that, formula one is trying to branch out with partnerships elsewhere out there. i'm a golfer, you know this, even taylormade golf has a

partnership with oracle red bull racing where they're releasing merchandise that's brandted as oracle red bull. >> i love that. >> a lot of f-1 is permeating. >> there is a golf event they're live streaming with f-1 drivers and professional golfers. so look at that. it's all coming together. >> well, stocks are continuing to hold on to some gains. the dow up 371 points right now. sara, great to be with you. >> thank you for being here, dom chu. i'll send it over to scott now and "the halftime report." sara, thanks so much. welcome to "the halftime report." i'm scott wapner. front and center this hour, the big rally in stocks. the bulls going two for two this week. all eyes now turn to apple earnings. we'll debate the markets, get you set up for that event later today. joining for the hour here at post 9, josh brown, kari firestone, jim lebenthal. so we're going for the fourth positive day in a row now. there's the market. we are green across the board. big story at the bottom there, the ten-year note yield falls to 4.67. we're talking about a